Hong Kong stocks rose, driving the Hang Seng Index to an 11-month high, on speculation more central banks will act to spur economic growth after the Bank of Japan cut its benchmark interest rate yesterday.
Asian stocks rose this week, snapping four weeks of losses, as exporters and commodity shares gained on speculation U.S. Federal Reserve Chairman Ben S. Bernanke would foreshadow measures to shore up the U.S. recovery.
China’s policy makers may be “less aggressive” in introducing further tightening measures as Europe’s sovereign-debt problem spreads and risk to the economy grows, UBS AG’s wealth management unit said.
Most Hong Kong stocks rose, lifting the benchmark index to the highest level in a month, after the city’s home prices climbed and European banks’ stress test results fueled optimism for a global economic recovery.
UBS AG’s wealth management unit favors stocks in emerging markets including China, India and Indonesia because the global economy isn’t expected to slip into another recession amid Europe’s sovereign-debt crisis.